Loss Prevention

Avoiding Stolen Metal -- And a Date with Judge

Scrap dealers in cities and towns across the country face the unenviable daily task of determining if a customer is trying to peddle stolen material or if the transaction, like most, involves legitimate scrap. The scrap industry has now issued a list of recommended practices to share with scrap dealers to decrease their chances of accepting stolen metals.

The Scrap Theft Task Force of the Institute of Scrap Recycling Industries Inc. (ISRI) has released a document that addresses the rampant issue of scrap metal theft.

The document, called "Recommended Practices and Procedures for Minimizing the Risks of Purchasing Stolen Scrap Materials," was approved by ISRI’s board at fall 2006 meeting in Charleston, S.C.

While stating that members already have taken steps to reduce theft, the recommendations, the recommendations serve to enhance these existing procedures. They are also intended to allow scrap dealers to adopt the practices that are most appropriate for their facility and have the greatest likelihood of having a positive effect.

The recommendations include:

• Building working relationships with local law enforcement.

• Requiring identification from the seller.

• Making payment by check or ATM, or using tracking methods for cash transactions.

• Capturing transactions on video surveillance.

• Prohibiting certain items such as clearly identifiable new production materials or items only used by governments and utility companies unless they are accompanied by proper authorizations.

• Training employees to identify suspicious materials.

"The recommended practices are a great addition to ISRI’s overall effort to doing its part in stopping scrap theft, like the Scrap Theft Alert System and the partnership with the National Crime Prevention Council," says Shelly Padnos, a task force member and executive vice president with Louis Padnos Iron & Metal Co., Grand Rapids, Mich.

"Scrap theft is a complex problem that, in order to make a positive impact, requires a multi-faceted solution with good cooperation and communication between our industry and law enforcement," she adds.

The recommended practices can be found at www.isri.org/TheftPractices http://www.isri.org/TheftPractices.